Define: Securities Dispute Resolution: Hearings

Hearings in securities dispute resolution resemble courtroom trials, albeit with a less formal atmosphere. During these hearings, all involved parties convene to listen to the case and present evidence. The claimant initiates the process by presenting their case, including evidence, witnesses, and experts. Subsequently, the opposing party is given an opportunity to cross-examine the witnesses. Following this, the respondent presents their evidence and witnesses, and the claimant can cross-examine them. The panel of arbitrators may interject with questions to clarify any uncertainties. The hearing concludes with closing statements from each party, after which the panel enters into deliberations. While hearings are adaptable and relaxed, they can become expensive if they extend beyond a week.

Arbitration hearings are formal meetings where all parties involved in a securities dispute gather to present their case and supporting evidence. These hearings resemble courtroom trials but are less formal. The process begins with a brief statement from the panel, followed by opening statements from each party. The claimant then presents their case, including evidence, witness testimony, and expert opinions. The opposing party has the opportunity to cross-examine all witnesses presented. The roles then reverse, with the respondent presenting their evidence and witnesses, and the claimant cross-examining them. The panel may ask questions to clarify any issues at any point during the hearing. Unlike in a trial, the rules of evidence are not as strict in arbitration. Arbitrators are more flexible than judges in allowing evidence to be presented. For example, if a securities broker is accused of making unsuitable investments for a client, both parties will present their evidence and testimony during the hearing. The claimant may present statements from the broker, account statements, and expert testimony to support their claim. The respondent may present their own statements, account statements, and expert testimony to refute the claim. The panel then deliberates and makes a decision. According to the Financial Industry Regulatory Authority (FINRA), most hearings typically last between 3 days to a week. The length of the hearing can impact the cost, as hearing fees are calculated per day. In summary, a securities dispute resolution hearing generally follows this timeline: swearing in of arbitrators, parties, and witnesses; opening statements from each party; claimant’s presentation of facts, including testimony; respondent’s presentation of facts, including testimony; presentation of any counter-claims, cross-claims, or third-party claims; rebuttal evidence; closing statements; scheduling post-hearing submissions before closing the record; and the arbitration panel closing the record.

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This glossary post was last updated: 16th April 2024.